Tuesday, March 8, 2016

Price War of Cross-border Online Commerce

Adjust the standard tax reform is the most talked about content. Under the current standard, cross-border retail electricity supplier in accordance with import "Parcel tax" levied, that most of the goods only pay 10% tax, and a tax of 50 yuan, but also enjoy tax-free. But after April 8, consumers are likely to will no longer enjoy tax exemption, and the need to pay 70% value-added tax and consumption tax. While the new tax standard still imports more traditional trade patterns there is a certain margin of preference, but the prices of most imported goods across borders or will usher in a more significant rise.

Sales heat up milk, diapers and other maternal and import of food commodities, for example, due to the lower average unit price of such goods, which is currently most of the goods do not need to bear the taxes in the purchase process. And under the new tax standard, such goods need to pay the equivalent of about 12% in commodity prices taxes. Specifically, most cross-border imports of Japanese Kao diapers priced at between 100-120 yuan cheap red bottom shoes uk, tax reform will go up to at least between 112 yuan to 145 yuan. While the low unit price of imported cosmetics, daily necessities and luxury light clothing and other goods will also assume higher taxes, the highest proportion is likely to go up more than 38%.

The industry believes that narrowing the cross-border electricity supplier and the tax difference between the traditional trade, reduce the "unfair" tax difference caused by the status quo, is that the overall tone of reform. Cross-border prices of imported goods basically a foregone conclusion, the difference between cross-border electricity providers rely tax profit model will suffer a more serious impact. While "cheap" has become one user for cross-border electricity supplier of the most important demands, in other words, the user price sensitivity is high. How to continue to maintain relative to traditional channels and competitors price advantage in the tax reform, a more comprehensive test of the strength of the platform red bottom shoes uk store. The already very brutal cross-border electricity supplier price war has become more bloody, the presence of short plate on funding resources, the conversion rate will be faster corporate demise.

Since the beginning of 2015, from the "diaper wars" to "6.18" and the "double 11", "Black Friday", "double 12", continue to initiate cross-border electricity supplier vast scale price war, especially Ali, Jingdong, NetEase and other more resources and scale advantages of the platform tried to promote cross-border electricity supplier business, cross-border electricity provider market competition more sinister. More and more companies are forced to cross-border electricity supplier involved in the "price war meat grinder," the extent of the casualties of the most serious small platform, Netease test Lahaina available in 2015 to launch a month to two large-scale promotion frequency, it is referred to as cross-border electricity supplier industry "price butcher."

According to Commerce Department data, mid-2015, engaged in cross-border electricity supplier business enterprises more than 200,000. And to the beginning of 2016, the industry reports have noted christian louboutin black that this number has been reduced to less than ten thousand. NetEase said, "NetEase has more than 23 billion yuan in cash reserves, able to test Lahaina Netease purchase of ammunition in the ongoing large-scale price war."

April 8 is expected to implement the tax reform program, not only in the level of taxation to make new provisions to enhance the cross-border barriers to entry of imported goods, the industry is more concerned about the topic. According to multi-party verification of information, "positive list" will replace the "negative list" became the basis christian louboutin ankle boots for foreign goods into the Chinese market through cross-border electricity supplier. Currently, the "positive list" of specific content Write obtain disclosure, but the basic principle is not involved in daily consumer goods import license, while card-related part of consumers to buy big demand necessities may also have included "positive list. "